Closed in NY at $1.3300 having recovered off session lows of $1.3251 through the NY afternoon. Rate marked lows into early Asia at $1.3295, as early traders targeted downside stops in USD/JPY and EUR/JPY, but after triggering stops in USD/JPY below Y8190 Japanese life companies emerged a strong buyers of this pair and EUR/JPY which propelled EUR/USD higher. The move up triggered stops through $1.3320, which added to the upside momentum, with rate touching a high of $1.3359. Pullbacks have remained shallow, finding support around $1.3345 with markets awaiting Europe’s reaction to the extended recovery. German retail sales data at 0600GMT could provide some reactive action into Europe. Offers noted toward $1.3360, with stops above, a break to open a move on toward $1.3375/85. Above here and progress toward $1.3400 expected to meet option related offers placed to a well reported barrier at $1.3400. Above and next resistance seen at $1.3415/25 (barrier at $1.3425/stops above). Support $1.3320, $1.3300. End month flows to dominate ahead of the EU Summit.
EasyForexNews Research Team